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re: its a goer! blowing chart away Let's say the well cost $5M...

  1. 143 Posts.
    re: its a goer! blowing chart away Let's say the well cost $5M all up. Cue's pro-rata share if they had been in from the start would be 15% * $5M = $750k.

    But if the sole risk premium is (say) 5 times, then Cue would now have to pay 5 * $750k = $3.75M to get back in at 15%.

    Actual numbers would be different - $5M might be on a little on the high side.
 
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